Following widespread criticism from both the National Congress and social media, the Brazilian government has decided to revoke the increase in import tariffs on electronic goods, a decision revealed by G1 in early February. This reversal, announced on Friday, involves the elimination of tariffs on 105 products, with the government maintaining previous rates for 15 other IT-related items. The original tariff rates for smartphones have been reinstated as part of this decision, effectively halting the proposed increase that could have pushed tariffs up by as much as 7.2 percentage points.

The increase in tariff was initially intended to address certain economic concerns but faced significant backlash due to its potential negative impact on consumers and various sectors that rely on affordable access to technology. By reversing the decision, the government has taken steps to alleviate pressure on consumers who purchase these products from abroad and to maintain competitiveness in the electronics market. The previously suggested tariffs raised concerns regarding the cost burden they would impose on many Brazilian families looking to purchase electronic products.

Although the reversal focuses primarily on technology and electronic products, it should be noted that there remains a partial increase in import duty affecting capital goods, machinery, and equipment. This selective approach indicates a strategic effort by the government to balance the economic needs of the country while also addressing consumer woes, ensuring that vital technology sectors are not hindered by excessive taxation, while still generating necessary revenue from other imported goods.